16-Unit Multifamily Flip

[Josh D.]

Investment Info: Large multi-family (5+ units) fix & flip investment.

Purchase price: $1,060,000
Cash invested: $1,060,000
Sale price: $2,275,000

Purchased 100% vacant 16-unit (all 1/1s) apartment building with 4500 SF of office on the ground floor. Remodeled all of the interiors of the units, common areas, painted the entire building, upgraded the lobby and sold it.

What made you interested in investing in this type of deal?

A nonprofit owned the building and lost their county grant and needed a quick sale so we were able to acquire the property at a very attractive basis. The neighborhood is getting better and the building was 10 minutes from downtown St. Petersburg.

How did you find this deal and how did you negotiate it?

A local real estate broker we have a relationship brought us the deal prior to it hitting the market. We were paying cash and could offer a quick closing so we initially offered $1.1M. After we inspected the building we asked for a $40K concession and the seller agreed.

How did you finance this deal?

My partner and I funded the deal with our own cash.

How did you add value to the deal?

We remodeled the interiors of all the units: LVT flooring, new cabinets, light fixtures, paint, toilets, glazed tubs, tiled tub surrounds, new granite counter tops, door hardware. We painted the common areas and exterior of the building giving it a more modern attractive look. Overall we spent approximately $300K on the renovations.

What was the outcome?

We put the property on the market in 2020 listed at $2.425M. We ended up closing the deal at $2.375M.  We were happy to hold the property and refinance if we did not get close to our asking price but wanted to sell if possible prior to capital gains rates going up in 2021.